Europe September PX contract confirmed at €1,190/tonne

07 September 2012 12:36  [Source: ICIS news]

LONDON (ICIS)--The European September paraxylene (PX) contract was confirmed at €1,190/tonne ($1,506/tonne), up €60/tonne from the previous month, after the initial settlement received further support from players in the market, sources said on Friday.

The agreement follows settlements last week of the PX Asian Contract Price (ACP). On 31 August, three Asian PX suppliers had settled their September ACP with their respective buyers at $1,450/tonne CFR (cost and freight) Asia, up by $85/tonne from the previous month’s settlement.

Market sources said this week that they had expected an increase. “Feedstock costs are high and the market is tight,” the seller said.

One buyer said: “€1,190/tonne is in line with Asia, a bit higher now with the exchange rate, but in line.”

The European settlement was agreed on a FD (free delivered) NWE (northwest Europe) basis.

Meanwhile, BP has declared force majeure (FM) on its PX and downstream purified terephthalic acid (PTA) production out of Geel, Belgium, because of problems impacting upstream availability, a company spokesman said on Thursday.

"It’s FM on PTA and PX, from 00.01 [on] 5 September – i.e. Wednesday morning - at 100% allocation," the spokesman said, adding that there would be no availability for customers' additional requirements.

The facility has the capacity to produce 1.33m tonnes/year of PTA and 631,000 tonnes/year of PX. BP would not go into detail about the problems with the third party feedstock supplier.

"[The force majeure] won't tighten the [PTA] market dramatically," an industry participant said.

Additional reporting by Caroline Murray

($1 = €0.79)

By: Helena Strathearn
+44 208 652 3214

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